The Top 10 Investment Mistakes to Avoid in Retirement

By Marcus Perks, Independent Financial Adviser | Supportive Financial Planning.

Retirement should be a time to enjoy the rewards of your hard work—not a time to worry about investment mistakes. Yet, many retirees fall into common traps that can erode their savings and affect their financial security.

At Supportive Financial Planning, we specialise in helping clients make smarter investment decisions throughout retirement. Here are the 10 most frequent mistakes we see—and how to avoid them.

1. Relying on a Single Investment

Putting a large portion of your savings into one stock or scheme might seem like a shortcut to higher returns, but it’s a risky move. Markets are unpredictable, and even “sure things” can go south. A diversified portfolio is your best defence against unexpected losses.

2. Playing It Too Safe

It’s natural to want to protect your nest egg. But if you invest too conservatively, your money may not grow enough to outpace inflation or last your full retirement. Striking the right balance between growth and security is essential.

3. Falling Victim to Scams

Retirees are often targeted by investment fraud. If something sounds too good to be true—like high returns with no risk—it probably is. Always verify credentials and stick with regulated financial advisers.

4. Ignoring the Impact of Fees

Hidden or excessive fees can quietly eat away at your returns. Products like annuities or managed funds often carry higher charges. Make sure you understand what you’re paying for—and whether it’s worth it.

5. Underestimating Inflation

Even low inflation can drastically reduce your purchasing power over time. Your investments should be designed to keep pace with rising living costs, or you risk falling short in later years.

6. Following the Herd

Making decisions based on what everyone else is doing—or relying on outdated advice—can lead to poor outcomes. Your investment strategy should reflect your personal goals, timeline, and risk tolerance.

7. Trying to Time the Market

Many investors attempt to buy low and sell high—but in reality, timing the market is extremely difficult. A better strategy is to remain invested through ups and downs, with a portfolio structured to weather volatility.

8. Overcommitting to Commodities

Gold and other raw materials can add variety to your investments but shouldn’t dominate your portfolio. They can be highly volatile and historically underperform in the long run. Keep exposure limited.

9. Withdrawing Too Much, Too Soon

One of the biggest post-retirement challenges is knowing how much to withdraw. Taking too much early on can drain your savings. A withdrawal plan that balances income needs and longevity is key.

10. Staying Too Close to Home

Many investors favour UK-based assets, but this can limit your growth potential. Global diversification—especially in regions like the U.S.—can boost your returns and reduce risk through broader exposure.

Ready to Plan with Confidence?

Retirement investing doesn’t need to be a minefield. With the right guidance, you can enjoy financial security and peace of mind for years to come.

At Supportive Financial Planning, we’re here to help you make informed decisions that protect your legacy and support your lifestyle.

📞 Call us on 0345 337 3414.
📧 Email us at cliveperks@supportivefp.co.uk.
🌐 Or request a free consultation by clicking on our "schedule a call" button.

This blog is for informational purposes only and does not constitute personalised financial advice. Please speak to a qualified financial adviser before making investment decisions.